Equity Inflows Moderate, Debt Funds Face Heavy Redemptions in September: AMFI Data

Mutual fund investments in India showed mixed trends in September 2025, with equity inflows moderating slightly and debt funds witnessing significant outflows, according to the latest data from the Association of Mutual Funds in India (AMFI).

Equity Funds Continue to Attract Investors

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

In September, equity plans brought in ₹30,422 crore, a 9% decrease from ₹33,430 crore in August. With ₹7,029 crore, flexi-cap funds took the lead, followed by small-cap funds at ₹4,363 crore and mid-cap funds at ₹5,085 crore. Multi-cap schemes contributed ₹3,560 crore, while large- and mid-cap funds brought in ₹3,805 crore. Inflows of ₹2,319 crore into large-cap funds demonstrated investors' desire for stability in the face of market turbulence. Thematic and sectoral funds, on the other hand, had a significant decline in inflows, coming in at ₹1,221 crore as opposed to ₹3,893 crore in August. Value and contra funds drew ₹2,108 crore, continuing their strong performance.

The total equity assets under management (AUM) rose to ₹33.7 lakh crore in September, up 1.81% from ₹33.1 lakh crore in August, reflecting sustained retail participation and systematic investment plan (SIP) contributions. Overall, mutual fund AUM grew 0.53% month-on-month to ₹75.61 lakh crore.

Debt Funds Hit by Major Redemptions

Debt schemes recorded heavy outflows of ₹1.02 lakh crore, the largest since April 2024. Liquid funds bore the brunt, with withdrawals of ₹66,042 crore, followed by money market funds at ₹17,900 crore. Ultra-short-duration and short-duration funds saw redemptions of ₹13,606 crore and ₹2,173 crore, respectively, while corporate bond and low-duration funds lost ₹1,444 crore and ₹1,253 crore. Longer-tenure debt funds, including long-duration and medium-to-long-duration schemes, recorded modest inflows of ₹61 crore and ₹103 crore, while dynamic bond funds gained ₹519 crore.

Hybrid and Passive Products Maintain Steady Momentum

Although the ₹9,397 crore in positive inflows into hybrid funds was less than the ₹15,293 crore in August, it still represented six months in a row of net increases. Growing investor interest in passive investing techniques is demonstrated by the ₹19,057 crore garnered by the "Others" category, which includes index funds and ETFs. Closed-ended plans continued to see withdrawals of ₹311 crore, while solution-oriented funds saw inflows of ₹286 crore.

Conclusion

September 2025 marked the first negative total mutual fund flow of the fiscal year at ₹43,146 crore, highlighting challenges for the debt segment amid rate-sensitive market conditions. Equity and hybrid funds, however, maintained steady inflows, reflecting investor confidence in long-term growth prospects and the appeal of diversified and passive investment strategies.